An SMSF can invest in collectable and personal use assets. However, SMSF trustees need to ensure the following requirements prescribed by ATO to be met to avoid breaching SIS Act.

these assets can not be leased to a related party,

these assets can not be stored in the private residence of related party,

there is no personal use of the asset,

trustees need record their decision on how and where these assets are to be kept,

these assets must be insured in the name of the SMSF trustee within 7 days of the purchase,

if these assets are to be sold to a related party from a SMSF, an independent and qualified valuation must be obtained.

Please note if the trustees lease these assets to a related party, the in-house asset rules 5% limit exemption do not apply. Therefore, SIS Act will be breached if there is a lease between a SMSF and its related parties.